Aussie falls further in Asia
Investing.com — The Aussie fell further in Asia on Monday, with China reporting a faster-than-expected producer price wins, shows, tire pressure build up in the economy is an important export destination for Australia.
AUD/USD is trading at 0.7875, down 0.25%, while USD/JPY changed hands to 112.00, up from 0.17%. EUR/USD traded 1.1807, down 0.13% and the GBP/USD traded down 0.0% to 1.3284.
The US dollar index, which rose in the measures of the greenback’s strength against a trade-weighted basket of six major currencies, 0.11% to 93.02.
China reported. September prices data gained 0.5%, compared to an expected 0.4% rise sen on month and up 1.6% in the year, as expected, while PPI jumped by 6.9%, compared to an expected 6.3% profit.
This week, investors will look at U.S. housing data to assess the economic impact of the hurricanes, the to the southern USA in the last month. Thursday’s data on third quarter economic growth in China will be closely watched for insight into the health of the world’s second-largest economy.
Tuesday is the inflation in the United Kingdom.the data also in focus amid speculation about a possible interest rate increase by the Bank of England as soon as next month
Last week, the dollar fluctuated against a basket of other major currencies on Friday after mixed consumer inflation data and the prospects for a further interest rate increase by the Federal Reserve in the coming months are clouded.
Consumer prices rose by 0.5% last month after advancing 0.4% in August, the labor Department reported on Friday. Economists have a forecast of 0.6%.
It is the largest increase in eight months, but was mainly due to the rising gasoline prices after the hurricanes hit the southern U.S. Underlying inflation remained subdued.
The report came after the minutes of the Fed at the September meeting published on Wednesday showed that «many participants expressed the concern that the low inflation readings this year may reflect not factors only temporary, but also the influence of developments that could prove more persistent.»
The data tempered expectations that the Fed will hike interest rates in December for the third time this year.
Expectations that US rates will rise to support the dollar and US assets more attractive to yield-seeking investors.
European Central Bank President Mario Draghi said the euro-zone still requires substantial monetary stimulus as inflation remains subdued.
Sterling gained ground amid hopes that it will employ in the UK could exit a two-year UK EU-be offered transition.